Consolidated Financial Results for the Nine-Month Period Ended
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Consolidated Financial Results for the Nine-Month Period Ended December 31, 2014 (Japanese GAAP) (Unaudited) Fiscal 2015 (Year ending March 31, 2015) “Third Quarter” means the nine months from April 1 to December 31. All financial information has been prepared in accordance with accounting principles generally accepted in Japan. “JR East” refers to East Japan Railway Company on a consolidated basis, or if the context so requires, on a non-consolidated basis. English translation from the original Japanese-language document. January 30, 2015 East Japan Railway Company Stock Exchange Listings Tokyo and Nagoya Securities Code 9020 URL http://www.jreast.co.jp/e Representative Tetsuro Tomita, President and CEO Contact Person Akira Yakushi, General Manager, Public Relations Department (Tel. +81-3-5334-1300) Scheduled Date for Release of a Quarterly Report February 12, 2015 Scheduled Date of Dividend Payment Commencement Not applicable Preparation of Supplementary Explanations of Quarterly Financial Results: No Quarterly Financial Results Presentation to Be Held: No 1. Consolidated Results for the Nine-Month Period Ended December 31, 2014 (April 1, 2014-December 31, 2014) (Amounts less than one million yen, except for per share amounts, are omitted.) (1) Consolidated financial results (Percentages represent percentage changes as compared with the corresponding period in the previous fiscal year.) Operating revenues Operating income Ordinary income Net income Millions of yen % Millions of yen % Millions of yen % Millions of yen % Fiscal 2015, 3rd Quarter 2,065,523 1.7 386,429 2.6 332,442 5.6 195,873 0.7 Fiscal 2014, 3rd Quarter 2,031,681 1.5 376,462 2.2 314,776 3.4 194,522 7.9 Note: Comprehensive income – Fiscal 2015, 3rd Quarter: 220,124 million yen (a decrease of 0.8%), Fiscal 2014, 3rd Quarter: 221,905 million yen (an increase of 17.2%) Earnings per share Earnings per share —Basic —Diluted Yen Yen Fiscal 2015, 3rd Quarter 498.23 - Fiscal 2014, 3rd Quarter 492.98 - (2) Consolidated financial position Total assets Net assets Equity ratio Millions of yen Millions of yen % Fiscal 2015, 3rd Quarter 7,392,699 2,295,873 30.8 Fiscal 2014 7,428,303 2,199,357 29.4 Reference: Shareholders’ equity – Fiscal 2015, 3rd Quarter: 2,276,797 million yen, Fiscal 2014: 2,180,632 million yen 2. Dividends (Year Ended March 31, 2014 and Year Ending March 31, 2015) Annual dividends 1st quarter end 2nd quarter end 3rd quarter end Year end Total Yen Yen Yen Yen Yen Fiscal 2014 - 60.00 - 60.00 120.00 Fiscal 2015 - 60.00 - - - (Forecast) Fiscal 2015 - - - 60.00 120.00 Note: Revisions to the most recently disclosed dividend forecasts: No 3. Forecasts for Fiscal 2015 (April 1, 2014-March 31, 2015) (Percentages represent percentage changes as compared with the corresponding period in the previous fiscal year.) Earnings Operating revenues Operating income Ordinary income Net income per share- Basic Millions of yen % Millions of yen % Millions of yen % Millions of yen % Yen Fiscal 2015 2,744,000 1.5 423,000 4.0 357,000 07.4 200,000 0.0 509.10 Note: Revisions to the most recently disclosed earnings forecasts: Yes Notes (1) Changes to principal subsidiaries during the period: No (Indicates whether changes have occurred in specified subsidiaries in accordance with changes in the scope of consolidation) Newly consolidated - excluded - (2) Application of special accounting treatment in preparing the quarterly consolidated financial statements: No (3) Changes in accounting policies, changes in accounting estimates and restatement of revisions i Changes in accounting policies with revision of accounting standards : Yes ii Changes in accounting policies other than the above : Yes iii Changes in accounting estimates : No iv Restatement of revisions : No (Note) For details, refer to “Changes in Accounting Policies, Changes in Accounting Estimates and Restatement of Revisions” on page 5 in the Attachments. (4) Number of issued shares (common stock) i Issued shares at period-end 3rd Quarter, 393,500,000 shares Fiscal 2014 395,000,000 shares (including treasury stock) Fiscal 2015 3rd Quarter, ii Treasury stock at period-end 650,356 shares Fiscal 2014 629,294 shares Fiscal 2015 iii Average number of shares 3rd Quarter, 3rd Quarter, 393,138,844 shares 394,587,178 shares during period Fiscal 2015 Fiscal 2014 Indication of quarterly review procedure implementation status These quarterly financial results are not subject to the quarterly review requirements as provided in the Financial Instruments and Exchange Law. The review of quarterly consolidated financial statements as provided in the Financial Instruments and Exchange Law had not been completed as of the date of these Consolidated Financial Results for the Nine-Month Period Ended December 31, 2014. Explanation of appropriate use of forecasts of business results; other important items The forecasts of business results and other forward-looking statements in this document are based on information available as of the date of this document and on certain assumptions that JR East viewed as reasonable as of the date of this document. Actual results may differ from such forward-looking statements for a variety of reasons. Regarding the forecasts of business results, please refer to “Qualitative Information on Consolidated Performance Outlook” on page 4 in the Attachments. Further, the non-consolidated performance outlook is on the next page. (Reference) Forecasts of the Non-consolidated Results for Fiscal 2015 (April 1, 2014-March 31, 2015) (Percentages represent percentage changes as compared with the corresponding period in the previous fiscal year.) Earnings Operating revenues Operating income Ordinary income Net income per share- Basic Millions of yen % Millions of yen % Millions of yen % Millions of yen % Yen Fiscal 2015 1,960,000 1.4 347,000 5.8 296,000 12.2 174,000 2.4 442.54 Note: Revisions to the most recently disclosed earnings forecasts: Yes Contents of Attachments 1. Qualitative Information on Quarterly Consolidated Financial Performance .............. 2 (1) Qualitative Information on Consolidated Operating Results .................................................................... 2 (2) Qualitative Information on Consolidated Performance Outlook ............................................................... 4 2. Matters Concerning Summary Information (Notes) ........................................... 5 (1) Changes in Accounting Policies, Changes in Accounting Estimates and Restatements of Revisions ... 5 3. Quarterly Consolidated Financial Statements .................................................... 6 (1) Consolidated Balance Sheets .................................................................................................................. 6 (2) Consolidated Statements of Income and Consolidated Statements of Comprehensive Income ............ 8 (3) Notes to Quarterly Consolidated Financial Statements ......................................................................... 10 (Notes on Going Concern Assumption)................................................................................................ 10 (Segment Information) .......................................................................................................................... 10 (Notes on Significant Changes in the Value of Shareholders’ Equity) ................................................. 10 (Additional Information) ........................................................................................................................ 11 1 1.Qualitative Information on Quarterly Consolidated Financial Performance (Unless otherwise stated, all comparisons are between the nine months from April 1, 2014, to December 31, 2014, and the nine months from April 1, 2013, to December 31, 2013.) (1) Qualitative Information on Consolidated Operating Results In the first nine months of the fiscal year ending March 31, 2015 (from April 1, 2014 to December 31, 2014; the third quarter), the Japanese economy continued to recover gradually, supported in part by a recovery in employment conditions, even though demand declined at the beginning of the term after rising prior to a consumption tax rate increase on April 1, 2014. Under these conditions, and guided by “JR East Group Management Vision V - Ever Onward, ” the East Japan Railway Company Group (JR East) steadily executed various initiatives centered around the railway and life-style service businesses, as well as Suica operations. As a result, during the first nine months of the year ending March 31, 2015, operating revenues increased 1.7% year on year to ¥2,065.5 billion, and operating income increased 2.6% to ¥386.4 billion, mainly due to growth in JR East’s transportation revenues primarily from Shinkansen Lines. Furthermore, ordinary income increased 5.6% to ¥332.4 billion mainly due to a decrease in interest expense. Although there were extraordinary losses associated with transfer of management of the section between Miyako and Kamaishi on the Yamada Line, net income increased 0.7% year on year to ¥195.8 billion. Segment Information Transportation In the Transportation segment, with railway operations as its core operations, JR East promoted the use of its Shinkansen and conventional line networks to secure revenues while ensuring safe and reliable transportation and enhancing customer satisfaction. Specifically, JR East endeavored to attain “extreme safety levels.” In response to a derailment accident in February 2014 within Kawasaki Station on the Keihin Tohoku Line, the Group